401(k) Best Practices Model

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Employer Match 401k Plans Prosperity Financial Group Inc

• Monitor investment options and provide analytical reports to the Investment Committee

• Recommend changes to the plan’s investment options when needed

• Frequently monitor participant-directed activity and provide necessary education

• Oversee distribution of enrollment materials and confirm required notices are provided to eligible participants

• Prepare a customized Investment Policy Statement for the plan and update it on an annual basis

• Analyze the plan’s target date of lifestyle funds for prudent fiduciary protection

• Benchmark the plan against the industry peer group every 3 years and consider alternative providers if warranted

• Review plan documents annually to ensure suitability and recommend changes if warranted

• Provide and implement an Education Policy for the plan

• Consistently interface with the Plan Sponsor’s investment provider and advocate for them on all operational levels

• Automatically enroll participants at a deferral of 6% of salary (While more than half of 401(k) plans auto enroll participants, only 16% of 403(b)s do.), the PSCA survey found

• Automatically escalate deferrals each year up to 10% of salary

• Do a re-enrollment to sweep in all employees not participating or not participating at a 6% deferral rate

• Choose an appropriate qualified default investment alternative for the plan

• Stretch the match to get employees to save more

• Streamline the plan’s investment lineup and monitor them regularly

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